If price level is excluded, net exports can change due to changes in Blank______ and changes in Blank______ rates.
Multiple choice question.
national income abroad; exchange
national domestic wages; employment
national wages abroad; investment
national domestic income; interest
1 answer
The correct answer is:
national income abroad; exchange
Net exports can change due to changes in national income abroad (which affects foreign demand for exports) and changes in exchange rates (which affect the relative prices of exports and imports).
